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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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Survey of the Best CD Rates for November 26, 2011

POSTED ON BY

This holiday week was a quiet one for CD rate changes. On my short list of top CD rates, there were only a few rate cuts. As usual, Ally Bank cut its CD rates. Its 11-month No-Penalty CD yield fell from 0.99% to 0.93%, and Ally's 5-year CD yield fell from 1.88% to 1.84%.

There remains a few more days to take advantage of Velocity Credit Union's three CD specials. Velocity's 1.51% APY 2-year CD, 2.12% APY 3-year CD and 2.83% APY 5-year CD remain the best deals for nationally available CDs. There's an online application, but you have to be careful to ensure you get the promo rates and not the standard rates. I have more details in my latest Velocity CD review. Velocity is a credit union that makes it easy for anyone to join via an association membership. It's one of many credit unions on my new list of credit unions open to all.

If you prefer a bank over a credit union, you will likely have to settle for much lower rates especially for long-term CDs. The best nationally available 5-year CD rate at a bank continues to be at US Bank with a 2.25% APY. This is US Bank's special CD, and the term is just under 5 years (59 months). As you can see in the list below, you can get a much higher rate at both Velocity Credit Union and Melrose Credit Union. Another downside with US Bank is that it's on my list of inflation dangerous banks since its disclosure gives the bank the right to refuse an early withdrawal. On top of that, it has a harsh early withdrawal penalty (see my US Bank CD review).

Local CD Deals

The two best CD deals continue to be in Southeast Texas where two credit unions offer top CD rates. Gulf Coast Credit Union is offering a 3.05% APY 3-year CD and NavyArmy Federal Credit Union is offering a 3.00% APY 30-month CD.

I only have two other CDs in my list of local CD deals with yields of 3.00% or higher. For both cases, the terms are much longer. One is a 5-year CD with a 3.03% APY at El Paso Employees FCU, and the other is a 10-year CD with a 3.00% APY at San Antonio Credit Union (SACU).

Based on the names of some of these credit unions, you might think their memberships are restricted to certain groups. However, all but SACU are open to anyone who lives, works, worships or attends school in parts of the metro areas where these credit unions are located. They're still local deals, but they're more open than you might have expected.

Long-Term CD Break Strategy

For the short-term CDs in my lists, you might notice CDs with the note "5-year CD closed after X years". These take into account the yield after the early withdrawal penalty is applied. Since Ally Bank's 5-year CD only has a 60-day interest EWP, it's still a good deal when closed early even with the recent rate cuts.

Since Velocity's early withdrawal penalty is only 6 months of interest, this makes Velocity's 5-year special CD a very good deal for short terms. Ally Bank's 1.84% 5-year CD is still the best deal for 6 and 12 months. However, Velocity's 2.83% APY 5-year CD becomes a better deal when it's closed after 12 months.

As we learned last month, there is some risk that the bank or credit union may increase the early withdrawal penalty on existing CDs (see my post on a credit union that was allowed to raise the EWP on existing CDs).

Note About the CD Survey

As I described in my rate table overview, you can use our CD rate tables to find the best rates for both nationally available CDs and local CDs. The Friday blog posts are intended to highlight nationwide CD deals that may not be apparent in the tables. For example, I'll include the post-penalty yields of a few long-term CDs.

The Friday blog posts are also intended to highlight the local CD deals that are available in large metro areas. There are many high CD rates, but most of these are at small banks in rural areas or at small credit unions with very narrow fields of membership. In these local CD surveys, my focus is on local CD deals that are in big cities or that are available in large areas of a state.

Yields Accurate as of November 26, 2011

Under 1-Year CD Rates

  • Noteworthy Local Deals

1-Year CD Rates

  • Noteworthy Local Deals

18-month CD Rates

  • Noteworthy Local Deals

2-Year CD Rates

  • Noteworthy Local Deals

3-Year CD Rates

  • Noteworthy Local Deals

4-Year CD Rates

  • Noteworthy Local Deals

5-Year CD Rates

  • Noteworthy Local Deals

Over 5-Year CD Rates

  • Noteworthy Local Deals

Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.

  Tags: CD rates

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Comments
17 comments.
Comment #1 by joe (anonymous) posted on
joe
I think with cds, the simplest and best deal are the 7 year penfed at 2.75%.  If the fed is going to keep rates 0 until mid 2013, that is still about 1.5 years, so there is a put option with these things if rates shoot up after that.

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Comment #2 by Brett CPA (anonymous) posted on
Brett CPA
Couldn't agree more with joe #1.  2.75% in this environment is a no-brainer.

1
Comment #3 by Anonymous posted on
Anonymous
Can someone explain to me why so many are gung-ho for going with Pen-Fed for a 7 year CD for 2.75% when Ken has several 5 year 3% and over CDs listed on his 5 year CD page?  Afena CU is one and there are several others.  Is there a problem with the other CUs he has listed that Pen-Fed seems to be the preference? 

My CDs won't mature until 2012 so it would be very costly for me to take advantage of even a 2.75% CD now.  I sure hope rates will still be available when I need them.  Personally, I don't think rates are going up in 2013 or any time soon thereafter so the decisions we make today are very important.

4
Comment #5 by BButler (anonymous) posted on
BButler
RE #3 and #4:  where are all these 3% CD's?    Most that are at that level (maybe all) have very restrictive membership.  Afena is VERY restrictive as to geography, unless I am reading their requirements incorrectly. Penfed and some others in the high 2.00's have easy membership.  Please tell me where I can get a nationally-available 3.00% CD for 5 years and I'll do it.

 

2
Comment #6 by Anonymous posted on
Anonymous
#5  I wondered about this also so I called most of the ones Ken has listed for 3% and found out you are right.  They did not have "open membership" so they can only be used by people who live and work in their particular area etc.  I crossed them all off my list.  It was too good to be true for me since I was not eligible to be a member under any of their criteria. 

The only one on Ken's list which was accessible for me was Delaware CU with a 3.04% for 5 yr CD.  I was told one could join something called "Del Wanted" for $12.00 and then become a member etc.  Other than that, I came up empty.  Best of luck to you.  I know how you feel

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Comment #8 by Anonymous posted on
Anonymous
Joe #1

Hey Joe, care to explain your 'put options' with the PenFed cd's? Thanks. I need all the help I can get!  

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Comment #9 by DarinS (anonymous) posted on
DarinS
#8 - If Joe is enable to explain what he said or meant, maybe Brett the CPA, who agrees with Joe, can? Usually, Brett is very good at giving investment advice, while he is hiding under his desk, so lets see what he might come up with this time. Just be patient.

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Comment #11 by Anonymous posted on
Anonymous
"Put" options are for stocks.  I never heard of a CD with a put option.  I think Joe may not have expected some to take him seriously.  Then again, in these times with CDs, who knows what is going on!

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Comment #13 by Anonymous posted on
Anonymous
DarinS #9- I don't give investment advice on this site, just my opinion.

I don't know what Joe was referring to re: put options, maye he was talking about early withdrawals if rates go up.  But either way, I agree that taking a high 2's% CD rate or 3% if possible is the way to go now.   I agree that rates will be low for at least 2 years.  I wouldn't go for a 1% short term CD now.  Everyone who opened a 3-4% Cd for 5-7 yrs. over the last few years is glad they did.  the PenFed 2.75% or some of the others, even for 10 years, look good to me and many of my clients now.

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Comment #14 by Brett CPA (anonymous) posted on
Brett CPA
RE: Anonymous #13- Name was left out by mistake, should be Brett CPA.  Thanks.

 

1
Comment #15 by Another CPA (anonymous) posted on
Another CPA
Why does the Brett CPA continue to post as a CPA, unless he/she is is trying to imply or assert an expert or knowledgable investment status, and then denies trying to directly, or indirectly, advise or offer us his investment advice? He cites his "clients", who may or may not, be in jail, or otherwise may be undesirables?  Obviously, he has not learned the "line". Hopefully the AICPA is watching. 

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Comment #16 by Garshon (anonymous) posted on
Garshon
I think that poster #15 is really just too uptight. I have read Brett's posts and I don't think that he is trying to imply anything.  Clients in "jail" ????  #15 is really out of line.  IMHO.

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